Consider a Perfectly Competitive Market with Inverse Market Supply $P = 5 + 3 Q ^ { s }$

question 57

Multiple Choice

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the impact on the government's budget resulting from the subsidy?

• A) \(- 45\)
• B) \(- 50\)
• C) \(- 270\)
• D) \(- 300\)

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Definitions:

Trabeculae

The network of fine, bony spicules within the structure of certain bones, such as the spongy part of bone, that adds structural support while minimizing weight.

Medullary Cavity

Large, marrow-filled cavity in the diaphysis of a long bone.

Endosteum

A thin vascular membrane lining the inner surface of the bony tissue that forms the medullary cavity of long bones.

Osteoblasts

Bone-forming cells involved in the synthesis and mineralization of bone during both initial bone formation and later bone remodeling.